Based On The Transmission Of A Complex Network Of Banking Crises

The financial industry is the core of the modern economy, and the banking system is the most important component of the financial industry. It is directly related to the safety of the entire financial system. Banking crisis is contagious. Under certain conditions, if a single bank crisis is handled improperly, it is likely to trigger the entire banking system crisis; and the banking crisis in the process of infection sometimes will trigger its own currency crisis in the country. On the other hand, banking crisis in the process of Cross-border transmission in specific conditions will also spread the currency crisis, or even lead to a global and comprehensive financial crisis. Therefore, for preventing the spread of the crisis to expand and help the banks in the crisis as soon as possible, the research on banking crisis contagion has important theoretical value and practical significance of the far-reaching in this field.This paper is divided into six chapters: Chapter one, Introduction. The second chapter briefly reviews the course of the banking crisis development during the last decade and introduces the financial variables, the principle market participants, and their behavior which are related to the banking crisis contagion. Chapter three, banking network structural model and research based on the network theory, introduces the way to build the banking networks and the micro-structure of these networks; describes the types of common banking network models; and then, builds a banking network functional analysis framework which is based on the complex network structure. Chapter four, dynamics research on the banking crisis contagion on the banking networks. In this part, we do the analysis on the basic way for the banking crisis contagion in the banking networks; inspect the strong volatility of the banking crisis contagion on the banking networks; do the simulation of dynamic behavior of the banking crisis contagion on the banking networks; and then, discuss the threshold of the banking crisis contagion and the immunization strategy for the banking crisis on the networks. Chapter five, banking crisis management research based on the complex network contagion. We introduce the crisis management theory from the system theory's view, and give the crisis management strategies form crisis management theory and how to keep the stability of the banking network.We get the following conclusions in this paper:Firstly, the creditor's rights and liabilities of the banking system formed the complex banking network structure. In the process of formation of the banking networks, it is corresponded to a certain level of the banking network structure gradually from micro to macro-evolution structure, and the formation and structure of the banking networks are also linked to the main act.Secondly, banking crisis contagion in the banking industry can be abstracted as crisis contagion infects in the banking networks. For the study of banking crisis contagion with the complex network theory, we have to think about the relationship and the effect between the structure and the function of the banking system, and then, we have to talk about the behavior of the banks of the main.Thirdly, there is a clear volatility for the banking crisis contagion in the banking networks. The degree of volatility links to the contagion rounds, and also links to the size of the banking networks.Fourthly, in the non-homogeneous banking networks, the range of banking crisis contagion ultimately depends on the initial bank which gets its banking crisis and its status is also important.Finally, the micro-macro economy environment will affect the existence and development of the banking networks. Therefore, one strategy for the management for the banking crisis contagion is to optimize the micro-macro economy environment.